CHEPLAPHARM Arzneimittel GmbH - Jefferies Group · CONFIDENTIAL Specialty pharma meets M&A...
Transcript of CHEPLAPHARM Arzneimittel GmbH - Jefferies Group · CONFIDENTIAL Specialty pharma meets M&A...
CONFIDENTIAL
Specialty pharma meets M&A competence
CHEPLAPHARM Arzneimittel GmbHJefferies London Healthcare ConferenceNovember 2019
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
2 CHEPLAPHARMOUR COMPANY ǀ Who we are
SUBSIDIARIES
• Paris (FR)
• Englewood, New Jersey (US)
FACTS 2019B
• > 300 employees
• 500 million EUR turnover*
• > 92 % share of exports
1998 ǀ Since 2003
• CHEPLAPHARM Arzneimittel GmbH was founded
• Part of the Braun Holding (BBG)
HEADQUARTERS
Greifswald (DE), close to the
Baltic Sea
*Including Net sales and sales/profit generated during the transitional phase of acquired products
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
3 CHEPLAPHARMAT A GLANCE
FINANCIAL ACHIEVEMENTS
80
122
228
292
47% 56%
59%
57%
2015A 2016A 2017A 2018A
mEUR Sales** EBITDA % EBITDA margin
COMPANY SNAPSHOT
*Compound Annual Growth Rate
CAGR* 54%
Since its foundation, CHEPLAPHARM has pursued a successful and sustainable growth strategy on a global level.
Family-owned company with > 25 years of expertise
Buy-And-Build strategy
M&A know-how and track record with > 90 products acquired
Branded specialty pharma / niche products in > 120 countries
Value creation via scalable platform and Life-Cycle-Management
Revenue growth < € 80m in 2015 to > € 290m in 2018
**Mix of Net sales and sales/profit generated during the transitional phase of
acquired products
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
4 CHEPLAPHARMAT A GLANCE
55%
2%
4%
4%
7%
8%
20%
Oceania
Africa
Northern America
Latin America and Caribbean
Germany
Asia
Europe ex Germany
CHEPLAPHARM is well diversified across products and geographic areas.
SALES BY GEOGRAPHY 2019B SALES BY THERAPEUTIC AREA 2019B
Sales = Mix of Net sales and sales/profit generated during the transitional phase of acquired
products
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
5 CHEPLAPHARMOUR COMMITMENT ǀ MISSION ǀ VISION
• CHEPLAPHARM is committed to provide products of high quality to our patients and to emphasize on sustainable product availability.
• A close and professional cooperation with our business partners is vital for us.
• We are dedicated to fully integrate acquired products and to duly continue their business.
It is our mission to provide high-quality, branded products on a global scale in order that our patients, business partners and employees benefit from the company’s success.
OUR
MISSION
OUR
VISIONIt is our vision to
• realize ǀ advance our >> growth strategy
• sustain ǀ strengthen our >> position as Global Player
• reinforce ǀ diversify our >> International Footprint
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
6 CHEPLAPHARMOUR BUSINESS MODEL ǀ Key drivers for the growth of our portfolio: BUY-AND-BUILD
Both types of product groups offer very attractive opportunities for CHEPLAPHARM’s successful “Buy-And-Build” strategy
Post-Patent Phase
Development Phase:High development risk
TimeCas
h
Development Phase Patent Phase
CHEPLAPHARM’s Business Model
Patent protection:• Big pharma • High price• High marketing costs• High volume risk
CHEPLAPHARM advantage:
• Limited or no competition• 10+ years out of patent• Stable sales• Low risk
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1
Key driver: BUY
NICHE products
LEGACY products
ACQUIRED PRODUCTS’ CHARACTERISTICS
• Established branded (®) products with proven track record
• Niche pharmaceutical products – often with USP in the market
• Strategic products with existing opportunity for growth
and/or
• Opportunistic products with focus on an attractive ROI
1
2
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
7 CHEPLAPHARMOUR SUCCESS STORY
Our previous achievements form a solid foundation for future developments.
For the past 16 years, CHEPLAPHARM has completed more than 90 acquisitions with well-known pharmaceutical companies in over 120 countries.
The transaction value is over 1.3 billion EUR.
Companies such as:
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
8 CHEPLAPHARMCORPORATE DEVELOPMENT
Building the platform Acceleration of growth
Nu
mb
er
of
cou
ntr
ies
cove
red
Konakion®
Roche
Lariam®
Roche
Inhibace®/PlusRoche
Cymevene®
Roche
Visudyne®
Novartis
Streptosil®
Boehringer Italia
UCB PackageUCB
Sanofi Voltaire IISanofi
Reisegold®
Teva
Halbmond®
Teva
Rohypnol®
Roche
Vesanoid®
Roche
Distraneurin® / Heminevrin®
AstraZeneca
Baldrian Dispert®
Vemedia
Klosterfrau PackageKlosterfrau
Anexate®
Roche
Calcivit®
Hexal
Xenical®
Roche
Dilatrend®
RocheVesanoid® JapanRoche
Sotalex®
BMS
Questran®
BMS
Atacand®/PlusAstraZeneca
Fungizone®
BMS
Etopophos®
BMS
VePesid®
BMS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Voltaire ISanofi
Dormicum®
Roche
Lexotan®
Roche
0
20
40
60
80
100
120
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
NICHE product with unique position
NICHE product with limited competition
LEGACY product with competition
Categorization of selected products (non-exhaustive):
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
9 CHEPLAPHARMBEING A GLOBAL PLAYER ǀ OUR INTERNATIONAL FOOTPRINT
> 90Acquisitions
> 1 bn €Deal value of past
acquisitions
> 900Acquired Marketing
Authorisations
> 120 Countries > 130Partners worldwide
30Yrs of experience withinthe management team
Status per 12/2018
OUR EXPERIENCE WITH ACQUISITIONS WORLDWIDE PRESENCE
• Direct business in more than 120 countries
• Grey coloured countries indirectly covered via our region-wide partners
• Vast and strong network of collaboration partners
• Secured supply and production network
Our achievements are a solid foundation for future developments
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
10 CHEPLAPHARMOUR FINANCING CONCEPT
With a TLB volume of EUR 980m outstanding just after one year, CHEPLAPHARM has also been very
successful at the Capital Markets. In addition, a sizeable hunting line (RCF) of EUR 310m is in place.
0
200
400
600
800
1,000
1,200
1,400
TLB I 07.18 TLB II 11.18 TLB III 06.19
TLB I - Tranche TLB - Tranche RCF commitment
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
11 CHEPLAPHARMOUR RATINGS
• “ CHEPLAPHARM runs a profitable and cash flow generative business model• …. good therapeutic and geographic diversity• …. successful track record and established relationships with leading global
pharma companies ”
• “With EBITDA margins projected at around 50% over the rating
horizon, the company ranks among the most profitable in Fitch’s low
non-investment grade portfolio….
• We project free cash flows (FCF) at or above EUR 100 million a
year….”
Fitch Ratings B+
B2
B
RATING-AGENCY ISSUER RATING
Moody‘s
Standard & Poor‘s
• “ CHEPLAPHARM will be able maintain its profitability metrics, supported by management's focus on lifecycle management activities
• The main strengths of the company is its established track record of careful productselection ….
• …. the company has been able to generate average EBITDA margins of about 55%”
CHEPLAPHARM Arzneimittel GmbH I Ziegelhof 24 I 17489 Greifswald I Germany I Tel.: +49 (0) 3834 8539-0 I Fax: +49 (0) 3834 8539-119 Internet: www.cheplapharm.com I Email: info[at]cheplapharm.com
12 CHEPLAPHARMKEY TAKEAWAYS
v
Provider of branded specialty pharma
Security of funding
M&A and business transfer track record
Further growth and development
OUR ACHIEVEMENTS ǀ Our basis for future developments
WHAT WE STRIVE FOR ǀ Strengthen and promote
Being a Global Player
Diversity in products and territory
Well-established global partner network
Expert in dealing with niche products
CONFIDENTIAL
Specialty pharma meets M&A competence
Q&A